Mohawk Industries posts record sales in the first quarter of 2021

All of the group’s business units have reported strong growth. The Global Ceramic segment experienced an 9.6% upturn driven by strong performances in North and South America, Europe and Russia.

Following a decisive rebound in the fourth quarter of last year, Mohawk Industries’ recovery continued during the first few months of 2021. The US flooring group again posted record figures in the first quarter with sales of $2.7 billion, up 16.8% on the same period in 2020. Net earnings rose to $237 million compared to $111 million in the first quarter of 2020.

“Our business continued to strengthen in the period and did not reflect our industry’s normal seasonality,” commented Jeffrey S. Lorberbaum, Chairman and CEO of Mohawk Industries.

“Around the world, consumers are continuing to invest in their homes, and new flooring has a major role in most remodeling projects. We are also starting to see moderate improvement in commercial demand as global economies expand and businesses begin to invest in anticipation of a return to normal.”

All of the group’s business units reported strong Q1 sales growth, including double-digit gains (+30.7% and +14.3% respectively) by the Flooring Rest of the World and Flooring North America segments devoted to the production and sale of carpet, laminate, wood, stone and vinyl.

The Global Ceramic segment’s sales increased by 9.6% in Q1 to $930 million, equivalent to 34.8% of the group’s total turnover, while its operating margin grew to 9.4% ($87.8 million, up 83% on 2020). These strong results were primarily due to favourable price and mix, higher volumes and increased productivity. All the ceramic segment’s US plants are running at higher levels, while the quartz plant is improving its productivity and more sophisticated veined collections are being introduced to expand the product mix.

The European ceramic business delivered a strong performance, driven by productivity, improving mix and greater consumer demand. The Russian, Brazilian and Mexican ceramic businesses delivered strong results, although they were limited by their capacities. In Brazil and Mexico, capacity will be increased this year to improve sales and mix, while in Russia the new premium sanitaryware plant is being expanded to meet growing demand.

Regarding forecasts for the rest of the year, Lorberbaum noted that “historically low interest rates, government actions and fewer pandemic restrictions should improve our markets around the world. We foresee the present robust residential trends continuing with commercial sales slowly improving in the second period.”